Universal Credit
Universal Credit is a welfare payment combining six existing benefits into one, paid once a month into your bank account which will replace the following benefits:
- Housing Benefits
- Income-related Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Tax Credits
- Income Support
- Child Benefits
More information
Bedroom Tax
Bedroom Tax is where the Housing Benefit Department decides if you have more bedroom(s) than you’re entitled to. They will then apply an appropriate reduction to your Housing Benefit. Currently, these reductions are 14% for one extra room and 25% for two or more extra rooms. Bedroom tax only affects people under pensionable age.
What can you do if you are affected?
- Pay the rent shortfall from your current income.
- Take on a lodger where appropriate (with consent from THCH)
- Register for a transfer or mutual exchange with the view of moving to a smaller home
- Apply for Discretionary Housing Benefit
Benefit Cap
If you are aged 16 to 64, there may be a limit on the total amount of benefit your household can get. This is called the Benefit Cap.
From 7 November 2016, the cap in Greater London changed to:
- £442.31 per week (£23,000 a year) if you’re in a couple
- £442.31 per week (£23,000 a year) if you’re a single parent and your children live with you
- £296.35 per week (£15,410 a year) if you’re a single adult
If you newly fall into these groups, you will start to be affected from sometime in January 2017. Those already affected by the Cap will have seen a further reduction made from 7 November.
What can you do if you are affected?
- Try to find Employment. (People on Working Tax Credits are exempt from Cap)
- Apply for Discretionary Housing Benefit – (only a short term solution)
- Look for ways to save money i.e. better Gas and Electricity tariffs
The following Benefits will exempt you from the Welfare Cap. Check to see if you receive the following Benefits;
- Personal Independence Payments ( PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance (AA)
- Carers Allowance
If you are struggling to pay your rent and need to speak to someone please contact the Income Recovery team.
If you need advice and support on getting into work or managing your money and benefits please contact our Tenancy Support Officer.
Get in touch